EU-Funded Project Monitors Energy Reforms in Ukraine

This publication was prepared with the support of the European Union. The contents of this publication
are the sole responsibility of NGO “DIXI GROUP”, as well as Civil Network “OPORA”, All-Ukrainian NGO
“Energy Association of Ukraine”, Resource & Analysis Center “Society and Environment”, Association
“European-Ukrainian Energy Agency”, and can under no circumstances be regarded as reflecting the
position of the European Union.
The project “Enhancing impact of civil society in monitoring and policy dialogue on energy and related
sectors’ reforms in line with the Association Agreement implementation” aims at strengthening the role of
civil society in advocating reforms in the energy and related sectors.
The key objectives of the project are:
• monitoring of the implementation of the energy provisions of the Association Agreement, including
relevant environmental and trade-related commitments;
• strengthening the civic experts’ and local actors’ capacity to track actual implementation of the
reforms;
• facilitation of public dialog to lead in proper implementation of the European energy and
environmental reforms;
• informing stakeholders and the Ukrainian society about the meaning and potential benefits of
European reforms in energy and related sectors in order to empower them to keep the government
accountable for pursuing these reforms.
www.enref.org

Executive Summary
No legislation which is required for the efficient launch of the gas market was adopted during the reporting
period. The issues of ownership of distribution networks and GTS entry fee for suppliers producing gas in
Ukraine have not yet been settled. At the same time, the process of GTS operator unbundling has started.
However, Naftogaz restructuring plan has not been published in July.
In the electricity sector, some key decisions were also being postponed, the draft law on the electricity
market and the regulator in particular. Subventions were increased to address the miners’ wages issue,
thus leaving the problem unsettled. Meanwhile, the Ministry of Energy commenced updating of the Energy
Strategy, but published no information about contractors and the terms of reference so far.
The draft laws “On Energy Efficiency of Buildings” and “On Commercial Accounting of Utility Services”
submitted to the Parliament and the approved Concept of the Energy Efficiency Fund have become an
important step towards systematic support to energy efficiency. However, these documents need
improvements as they can only be effective if compliant with the EU law.
The situation in the environment and renewable energy sector has been similar. Undoubtedly, ratification
of the Paris Agreement and adoption of the draft laws on environmental impact assessment and strategic
environmental assessment in the first reading are a great move forward. The further reform process will
depend on effective improvement of those draft laws. Another important step was commencement of
development of the National Emissions Reduction Plan for mining and metallurgical companies. Certain
issues related to the status of Chornobyl NPP exclusion zone have been settled which will facilitate the
implementation of “green” energy projects there.
No significant progress was made in the sector of oil and oil products. The government focused on
expanding the oil depot that can be used for storing oil reserves, and some issues related to authorizing
subsoil use which, however, does not guarantee equal access.
In the business climate sector, transparency has been increased in customs procedures and public
procurements. However, most expected draft laws on energy are yet to be considered.
Abbreviations
SAIFI — System Average Interruption Frequency Index that shows the number of interruptions per
consuming company
SAIDI — System Average Interruption Duration Index that shows the average duration of electricity supply
interruptions
RES — renewable energy sources
VRU — the Verkhovna Rada of Ukraine
GTS — gas transmission system
CMU — the Cabinet of Ministers of Ukraine
IAEA — the International Atomic Energy Agency
NEPURC — the National Energy and Public Utilities Regulatory Commission
UES — Unified Energy System
WEM — wholesale electricity market of Ukraine
TSO — transmission system operator
FES — fuel and energy sector
WTO — the World Trade Organization
TPP — thermal power plant
AA — the Association Agreement

Gas
Promotion of Ukraine by creating competitive conditions in the gas market is slowing down. In July, no
legislative act was adopted in either area of the legal framework reform under the AA. Thus, the draft
Law on the independent regulator — NEPURC — has been returned for another second reading, the
Parliament has not considered the draft law on bringing other legislative acts in compliance with the
Law “On the Natural Gas Market” registered back in June, no new similar draft laws have been
submitted, and no existing legislative initiatives on the regulation of ownership rights in the gas
distribution sector have been considered.
On July 1, the Government commenced the process of GTS operator unbundling pursuant to the EU Third
Energy Package with the approval of the plan of restructuring of Naftogaz of Ukraine NJSC1
. However,
neither a relevant resolution of the Cabinet of Ministers, nor the NJSC unbundling plan were published in
July. One of the major obstacles to the further development of a competitive gas market in Ukraine is
Ukrainian GTS operator — Ukrtransgaz PJSC — being controlled by Naftogaz of Ukraine. A trader
managing a GTS operator is not only illogical but causes a conflict of interest2
.
Violation of the WTO requirements to create equal conditions for competition has not been remedied3
.
This requirement provides for the introduction of compulsory GTS “entry tariff” for gas importers and no
GTS “entry fee” for suppliers producing gas in Ukraine.
Directive 2009/73/EC concerning common rules for the internal market in natural gas and repealing
Directive 2003/55/EC (AA: Articles 338, 341, Annex XXVII) pursuant to Article 278 of the AA
Despite complying with all pre-conditions for considering the draft Law No. 48684
“On the Introduction of
Amendments to Some Legislative Acts of Ukraine (Aiming at Bringing Them in Compliance with the Law of
Ukraine “On the Natural Gas Market”)” registered on 24 June 2016 that replaced the Government’s draft
Law No. 4503, MPs did not vote for the inclusion thereof in the agenda of the current session5
.
The Parliament considered the Basic draft Law “On the National Energy and Public Utilities Regulatory
Commission” No. 2966-д6
on July 14. However, it has not been adopted. MPs once again forwarded this
draft Law for further improvement (repeated second reading). The document provides for the election of
NEPURC members on a competitive basis, ensuring independence of the regulator in its decision-making
process, openness and publicity of the state regulation process.
At the same time, the new alternative draft Law No.49777
“On the Regulation of Activities of the National
Energy and Public Utilities Regulatory Commission” was registered the same day. According to that
document, NEPURC members must be nominated by Parliament factions and appointed by a resolution of
the VRU, and the regulator’s activities must be regulated by the Cabinet of Ministers.
According to Naftogaz’s notice of July 4 on the company restructuring8
, the Resolution “On Unbundling of
Natural Gas Transportation and Storage (Injection, Offtake)” considered by the Cabinet of Ministers on July
1 proposes the creation of two new joint stock companies — Mahistralni hazoprovody Ukrainy (Main Gas
Pipelines of Ukraine) and Pidzemni gazoskhovyshcha Ukrainy (Underground Gas Storage Facilities of
Ukraine) — that will receive respective assets of Ukrtransgaz PJSC. 100% of shares of these companies will
1 https://twitter.com/mineconomdev/status/748821483007332352
2 http://utg.ua/utg/media/chairman-column/2016/prezident-ukrtransgazu-igor-prokopiv-proviv-pres-konferenciu-gts-ukrainy.html
3 http://zakon2.rada.gov.ua/laws/show/250-17
4 http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=59497
5 http://w1.c1.rada.gov.ua/pls/radan_gs09/ns_golos?g_id=8229
8 http://www.naftogaz.com/www/3/nakweb.nsf/0/E01D17119F021B26C2257FE6002589AE?OpenDocument&year=2016&month=
07&nt=%D0%9D%D0%BE%D0%B2%D0%B8%D0%BD%D0%B8&

Gas
be owned by the State. The regulatory acts required to create these companies will be prepared in 2016–
2017. Moreover, according to the Resolution, gas transportation assets will be transferred to the new
operator only after the Arbitration Institute of the Stockholm Chamber of Commerce delivers its final
decision in the case involving Naftogaz and Gazprom which is expected in 2017. At the same time, the
document has not been officially published, and its contents were only disclosed in media9
.
Delaying the reform of Naftogaz of Ukraine NJSC jeopardizes the whole further process of market
liberalization. The importance of the NJSC unbundling for the further gas market reform has become one of
the key issues discussed during the meeting between the Minister of Energy and Coal Industry of Ukraine
Mr. IhorNasalyk with the Director of the Secretariat of the Energy Community Mr. Janez Kopač on July 710
.
The participants in the meeting came to the conclusion that a joint working group for Naftogaz
restructuring needs to be created to support and coordinate further work in this area. This working group
has already commenced its work in July.
With the purpose to secure the principles of implementation of Article 11(7) of the Law “On the Natural
Gas Market”, on July 13 the CMU approved the sample natural gas sale and purchase agreement for
suppliers with special obligations (Resolution No. 44411
). Also, the Government abolished its own
resolutions12
that were in contrast with the provisions of the Law of Ukraine “On the Natural Gas Market”,
in particular the Resolution No. 44213
of 2001 “On Supplying Natural Gas to Consumers” which had resulted
in artificial market segmentation.
In July, the Government also introduced amendments to its earlier resolution regulating the improvement
of corporate management of Naftogaz (Resolution No. 46614
). The document abolished provisions on the
company’s supervisory board.
Regulation (EU) No. 715/2009 on conditions for access to the natural gas transmission networks and
repealing Regulation (EC) No. 1775/2005 (AA: Articles 338, 341, Annex XXVII) pursuant to Article 278 of
the AA, trade-related matters (Articles 269–274 of the AA)
On July 20, Naftogaz supported the proposal presented by Vice-President of the European Commission
Mr. Maroš Šefčovič to resume the trilateral negotiations with Gazprom on the terms of supply of Russian
gas to Ukraine15
.
During the discussions within the framework of the 1st
Meeting on Implementation of the Gas Network
Codes in the Energy Community that took place on July 7 in Hungary16
, Ukrtransgaz PJSC emphasized on the
need to establish different deadlines for the implementation of network codes in the member countries
and pointed out Ukraine’s ability to cope with that earlier than the implementation concept presented in
June suggests. At the same time, Ukrtransgaz, together with Gaz-System and FSGZ, raised doubts about the
effectiveness of phased implementation of certain codes and insisted on simultaneous implementation of
the whole package as the codes themselves and their particular provisions are much interrelated17
.
9 http://economy.apostrophe.com.ua/article/jenergetika/2016-07-01/plan-restrukturizatsii-naftogaza-sostavili-v-restorane-ministr-
nasalik-rasskazal-detali/5914
10 http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245126552&cat_id=35109
11 http://zakon2.rada.gov.ua/laws/show/444-2016-%D0%BF
12 http://www.kmu.gov.ua/control/uk/cardnpd?docid=249189576
13 http://zakon2.rada.gov.ua/laws/show/ru/1729-2001-%D0%BF
15 http://www.naftogaz.com/www/3/nakweb.nsf/0/78EA60E532B1F28EC2257FF60034720E?OpenDocument&year=2016&month=
07&nt=%D0%9D%D0%BE%D0%B2%D0%B8%D0%BD%D0%B8&
16 https://www.energy-community.org/portal/page/portal/ENC_HOME/CALENDAR/Other_Meetings/2016/Jul_07
17 https://www.energy-
community.org/portal/page/portal/ENC_HOME/DOCS/4224396/377055ABDA715BCBE053C92FA8C05799.pdf

Gas
Pursuant to the 2015 CESEC Initiative of the European Commission aimed at enhancing supply security in
Central Eastern and South-Eastern Europe, on July 19, GTS operators of Ukraine and Romania signed an
agreement on connecting the gas transportation systems of both countries at Isaccea that is located along
the gas transportation route from Ukraine to Bulgaria via Romania. The terms and conditions of this
agreement that will come into force on October 1 are fully compliant with the network code on
interoperability and data exchange rules under the Regulation (EU) No. 703/201518
. Along with the similar
agreement between Romania and Bulgaria19
, this agreement has become the key step for launching the
Trans-Balkan Gas Transportation System between Greece, Turkey, Macedonia and Ukraine which can be
used to transport gas in compliance with the European rules.
Directive 2004/67/EC concerning measures to safeguard security of natural gas supply (AA: Articles 338,
341, Annex XXVII), early warning mechanism (Annex XXVI to the AA), emergency response (Articles 275,
276, 309, 314)
Pursuant to Article 29 of the Treaty establishing the Energy Community and Article 7 of the Law of Ukraine
“On the Natural Gas Market”, on July 29 the Ministry of Energy and Coal Industry published the 2015
Report on the results of monitoring security of natural gas supply20
.
The Report describes the progress in the implementation of natural gas supply security measures provided
for by Article 5 of the Law. At the same time, it says nothing about whether the Ministry of Energy and Coal
Industry has already proceeded with updating the Rules of natural gas supply security for the following
calendar year21
which is supposed to be published by September 1.
Along with detail information on the demand and supply balance and resourcing of the natural gas market,
the Report offers no information about long-term foreign economic agreements on natural gas sale and
purchase or supply, nor analysis of their impact on the security of supply.
The fullest monitoring covered by the Report was conducted in the area of gas transportation security. At
the same time, the Report does not specify the status of the updated National 22
Gas Supply Security Action
Plan for the following calendar year (according to Article 6 of the Law it must be reviewed by September 1)
and how the measures included in this Plan may impact competition on the natural gas market. The Report
also lacks information about the current legal mechanisms used to encourage investments in the gas sector
of Ukraine.
Meanwhile, the Government approved an action plan to prepare the fuel and energy sector for the
2016/17 autumn/winter period (Ordinance No. 566-р23
). This plan provides for, among other, identifying
volumes and arranging pumping of gas into underground storage facilities, checking conditions of gas
equipment in populated areas, as well as taking measures to facilitate repayment of consumers’ debts for
the gas they consumed.
18 http://utg.ua/utg/media/news/2016/07/ukrana-ta-rumunya-pdpisali-ugodu-pro-pdklyuchennya-gazotransportnix-sistem.html
19 https://ec.europa.eu/energy/en/news/bulgaria-romania-and-romania-ukraine-sign-gas-agreements
20http://mpe.kmu.gov.ua/minugol/control/uk/publish/article;jsessionid=7C4B02116B98E45BC55A2BCBF206C864.app1?art_id=245
131842&cat_id=35109
21 http://zakon2.rada.gov.ua/laws/show/z1489-15/paran16#n16
22 http://zakon0.rada.gov.ua/laws/show/z1458-15

Electricity and Nuclear Security
The electricity sector and the public were waiting for the adoption of the Laws “On the Electricity
Market” and “On the National Energy and Public Utilities Regulatory Commission”, however, these laws
failed and their future will depend on the political arrangements and the autumn vote.
The Ministry of Energy and Coal Industry commenced updating the Energy Strategy of Ukraine, but no
information about the process of selecting candidate contractors, nor the relevant terms of reference
have yet been published on the official websites of the Ministry and the NEPURC.
The government allocated additional funds to pay arrears in miners’ salaries. However, the problem has
been postponed, not settled.
Directive 2009/72/EC of 13 July 2009 concerning common rules for the internal market in electricity and
repealing Directive 2003/54/EC (AA: Articles 269, 273, Chapter 11, Title IV)
On July 14, the draft Law “On the Electricity Market of Ukraine” No. 4493 was included in the agenda of the
plenary meeting of the IV session of the VIII convocation of the VRU which was expected to be adopted in
the first reading.24
Unfortunately, the draft Law has not been considered and now can be expected to be
considered during the V session opening in September.
In July, the NEPURC published information about the progress in the implementation of the Timetable of
the implementation of the new electricity market model during April–June 2016. This was preceded by the
meeting of the Coordination Group chaired by the NEPURC member Mr. Yevdokimov with the participation
of the NEPURC, the Ministry of Energy and Coal Industry, Energorynok SE, Ukrenergo NEC SE, Western
experts and specialized NGOs. Pursuant to the Timetable, the Project Office of the Energy Community
prepared and forwarded to the NEPURC a series of draft regulatory acts on the new electricity market
regulating, in particular, licensing conditions, certification procedure, draft Transmission System Code, etc.
Draft normative and legal acts are also being reviewed within the framework of the technical assistance
project of the European Commission TWINNING: Support the National Commission for State Energy and
Public Utilities Regulation (NEURC) of Ukraine in the process of electricity market reform, which is being
implemented together with the Slovak Regulatory Office for Network Industries (RONI). Elaboration of the
Government decision on corporatization of Ukrenergo NEC as TSO was in progress, but no draft has been
published yet.
Following almost a half-year discussion, in July the NEPURC forwarded the draft Laws “On Stabilization of
Settlements in the Wholesale Electricity Market of Ukraine” and “On the Introduction of Amendments to
the Tax Code of Ukraine in the View of the Stabilization of Settlements in the Wholesale Electricity Market
of Ukraine” to the Parliament Committee on Fuel and Energy Complex, the Ministry of Energy and Coal
Industry, the Ministry of Economic Development and Trade and the Ministry of Finance.25
The draft Law
suggests that opening a fully operational electricity market be preceded by mutual settlements; assignment
of the debt and the right to claim the debt for the electricity procured/sold in the wholesale market;
repayment (write-off) of debts in the amounts not exceeding the accrued but not received subventions for
the compensation of losses resulting from electricity supply to consumers at reduced tariffs. The draft Law
also provides for certain measures aiming at arranging full current settlements for the electricity consumed
by high-risk categories of consumers, such as water supply and coal mining companies, including opening
special accounts for them and establishing funds allocation algorithms. The launch of a fully operational
electricity market is supposed to be followed by novation (assignment of the right of claim), write-off of
debts of wholesale electricity supplier in the process of its liquidation. Such operations also require relevant
amendments into the Tax Code of Ukraine.
According to Energorynok SE, suppliers’ debts for the electricity procured by them on the wholesale market
as of 30 June 2016 totaled UAH 28,214,323 thousand. Moreover, electricity producers received advance
payments in the amount of UAH 6,580,146 thousand. Debts of Energorynok SE to its creditors for the
24 http://iportal.rada.gov.ua/meeting/awt/show/6276.html
25 http://www.nerc.gov.ua/?news=5276

electricity procured by it on the WEM as of 30 June 2016 totalled UAH 29,010,576 thousand. Moreover,
advance payments received from electricity suppliers reached UAH 521,062 thousand.26
The NEPURC and the Ministry of Energy and Coal Industry together with experts recognized the need to
commence transition to 20 kV standard to be accompanied by change of configuration and automation of
the distribution system as a necessary and priority step towards increasing performance of the system and
reducing costs, SAIDI and SAIFI. The meeting took place on July 18 in the NEPURC’s office.27
At the same
time, it was emphasized that the size of the electricity distribution networks in Ukraine and significant
amounts of the needed investments would not allow simultaneous transition of all networks to a new
voltage standard.
Pilot innovation projects will be reviewed by the Scientific and Technical Council of the Ministry of Energy.
The participants in the meeting decided on creation of three working groups on the basis of the NEPURC to
include representatives of the Ministry of Energy and Coal Industry and the industry. These will deal with
regulatory documents, elaborating decisions, specifications for 20 kV equipment; the Concept of
automated distribution network (telemechanization, remote control, power system protection); the
Concept of metering systems and encouraging consumers to switch to 20 kV.
With the purpose to approve a comprehensive program of transition to 20 kV distribution systems, the
Ministry of Energy and Coal Industry and the NEPURC are going to draft a resolution of the Cabinet of
Ministers to provide for, among other, support to domestic 20 kV suppliers28
.
Regulation (EC) No. 714/2009 of 13 July 2009 on conditions for access to the network for cross-border
exchanges in electricity and repealing Regulation (EC) No. 1228/2003 (AA: Article 270, Chapter 11, Title
IV)
Ukrenergo NEC updated information about the existing regulatory documents on maintenance and repair
of power plants and networks and published it on its official website.29
Such information must be regularly
updated and published by Ukrenergo NEC SE as TSO.
According to the NEPURC Report on the progress in the implementation of the Timetable of the
implementation of the new electricity market model during April–June 2016, the Project Office prepared
the first draft of the Rules of market monitoring and sent it to the Secretariat of the Energy Community.30
In July, Ukrenergo NEC as operator of the UES of Ukraine once again called on its consumers to save
electricity during the hot period31
. The company also assured that it took all necessary and possible
measures to ensure security of electricity supply to all categories of consumers. In particular, cogeneration
units in Kyiv and Kharkiv were used to cover the deficit, and oil-gas units of Ternopil TPP and Zaporizhzhia
TPP can also be used. The neighbouring countries are ready to provide assistance to Ukraine’s energy
system if necessary.
As was mentioned in the June Report, an armed group had seized the office of Ukrenergo NEC’s Donbas
Energy System in the town of Horlivka. As a result, operation of the head office was blocked, the
management could not access their workplaces. Due to the measures taken, including those involving
representatives of the company, and the firm position of the personnel of Donbas Energy System, their
professional responsibility for the secure operation of the regional energy system as a part of the UES of
Ukraine, on July 12, operation of the head office of Donbas Energy System has been unblocked, and the
company management resumed their work32
.
26 http://www.er.gov.ua/data/DEF/dodatok_kv2_2016.pdf
27 http://www.nerc.gov.ua/?news=5272
28http://mpe.kmu.gov.ua/minugol/control/uk/publish/article;jsessionid=943F8A748EB737D71A3C0C4EBF6FDFA6.app1?art_id=245
130628&cat_id=35109
29 http://www.ukrenergo.energy.gov.ua/Pages/ua/DetailsNew.aspx?nID=2563
30 http://www.nerc.gov.ua/data/filearch/Catalog7/Stan_vyk_Plan-hrafik_model_elektro%2804-06_2016%29.pdf
31 http://www.ukrenergo.energy.gov.ua/Pages/ua/DetailsNew.aspx?nID=2813&urlNews=/pages/ua/mainevents.aspx
32 http://www.ukrenergo.energy.gov.ua/Pages/ua/DetailsNew.aspx?nID=2813&urlNews=/pages/ua/mainevents.aspx

Article 338, Chapter 1, Title V of the Association Agreement
On July 25, an interdepartmental working group was created by the Order of the Ministry of Energy and
Coal Industry No. 465 to deal with updating the Energy Strategy of Ukraine by 2035. This working group
must arrange the development and consideration of the draft new version of the Energy Strategy by 1
December 201633
. It includes representatives of the Ministry of Energy and Coal Industry, the NEPURC, the
Ministry of Regional Development, Construction and Housing and Communal Services, the Ministry of
Ecology and Natural Resources, the State Agency on Energy Efficiency and Energy Saving, leading energy
and transportation companies, state scientific institutions, members of the Public Council of the Ministry of
Energy and Coal Industry, trade unions. Mr. Torsten Woellert, Team Leader Energy and Environment,
Support Group for Ukraine, European Commission, and Mrs. Olga Simak, Sector manager, Energy, EU
Delegation to Ukraine, were invited to participate in the work of the group. The key contractor became
McKinsey & Company that has already presented the draft first part of the Energy Strategy titled Demand.
The Cabinet of Ministers issued the Ordinance No. 487-p of 13 July 2016 to re-allocate State budget
expenditures and credits from the State budget among certain programs, in particular projects of the IBRD,
EIB and EBRD. This decision will allow full financing of all the planned measures within the framework of
joint investment projects co-funded by international financial organizations34
.
Article 339, Chapter 1, Title V of the Association Agreement, coal market
The problem of delayed salaries to miners caused another series of protests. Thus, miners of Lviv Oblast
blocked traffic along the international highway Lviv – Rava-Ruska35
, a group of miners went on a hunger
strike in Donetsk Oblast36
, and in Kyiv a meeting took place in front of the building of the Cabinet of
Ministers of which the participants demanded settling the miner salary issue and giving back priority to
State-owned mines in the coal market37
. In response to the increasing problem, the Cabinet of Ministers
issued the Ordinance No. 537-p of 27 July 2016 to re-allocate the State budget expenditures approved for
the Ministry of Energy and Coal Industry and allocate additional UAH 200 million to pay salaries and
improve occupational safety of miners38
.
According to mass media39
, following the discussions around API2+ formula of coal price, the Ministry of
Energy and Coal Industry ruled that the fuel price must be based on the average cost of gas coal on the
Polish Power Exchange and is now preparing the draft Law on coal market40
to bind vertically-integrated
companies to sell part of the coal they produce on exchange. Within the framework of the coal industry
reform, the Ministry of Energy and Coal Industry also issued the Order No. 433 of 2 July 2016 to conduct
expert assessment of scientific institutions in the coal industry subordinated to the Ministry41
.
Article 342, Chapter 1, Title V of the Association Agreement, cooperation in the nuclear safety sector,
Directive 96/29/Euratom, Council Directive 2006/117/Euratom, Council Directive 2003/122/Euratom
Ukrainian NPPs hold workshops and trainings, including EU-funded, aiming at enhancing nuclear safety. In
particular, South Ukraine NPP held a workshop on the analysis of the underlying causes and personnel
reliability in the context of investigation of accidents within the framework of the EU soft support
program42
. Representatives of Khmelnytskyi NPP met with AREVA specialists within the framework of the
33 http://mpe.kmu.gov.ua/minugol/control/uk/doccatalog/list?currDir=50043
34 http://zakon3.rada.gov.ua/laws/show/487-2016-%D1%80
35 http://24tv.ua/shahtari_yakim_ne_viplachuyut_zaplatu_perekrili_trasu_na_lvivshhini_n710191
36 http://www.radiosvoboda.org/a/27845033.html
37 http://www.volynpost.com/news/72278-volynski-shahtari-shturmuyut-kabinet-ministriv-foto
39 http://www.epravda.com.ua/news/2016/07/13/599002/
40 http://www.epravda.com.ua/news/2016/07/8/598558/
41 http://mpe.kmu.gov.ua/minugol/doccatalog/document?id=245127446
42 http://www.atom.gov.ua/ua/press/nngc/45628-
na_yuuaes_proyishov_drugiyi_navchalniyi_semnar_u_ramkah_proektu_myako_dopomogi_vrosoyuzu/

Instrument for Nuclear Safety Cooperation project of the European Commission43
. Also, Rivne NPP tested
the European system of forecasting nuclear accidents RODOS44
, held joint trainings with the National Guard
and the Security Service of Ukraine45
, and representatives of Energoatom National Nuclear Energy
Generating Company discussed the concepts of severe accident management and modelling during the
meeting organized by the World Association of Nuclear Operators46
.
At the same time, the Cabinet of Ministers issued the Ordinance No. 434 of 13 July 2016 to approve the
Procedure of allocation of funds from the State budget for ensuring safety in uranium mining47
, and the
Ordinance No. 501-р of 22 July 2016 to approve a comprehensive action plan for the implementation of
provisions of the Design-basis threat for nuclear installations, nuclear materials, radioactive waste, other
sources of ionizing radiation48
.
Within the framework of the diversification policy, Westinghouse specialists held a training at Zaporizhzhia
NPP on software monitoring in connection with starting the use of this company’s fuel at the Power Block
No. 549
, and Energoatom’s representatives met with Mr. Jonathan Elkind, the U.S. First Deputy Secretary of
Energy to discuss, apart from diversification issues, construction of the central spent fuel storage facility
and preparations for the winter period50
. Meanwhile, economic court unblocked financial and economic
activity of Energoatom that had been blocked because of its debts to Ukrelektrovat51
.
Article 342, Chapter 1, Title V of the Association Agreement, cooperation in the nuclear safety sector.
Cooperation aims at resolving problems caused by the Chornobyl accident and putting Chornobyl NPP
out of operation
On June 14, the Parliament adopted the Law No. 1472-VIII regulating certain aspects of the legal status of
the territories affected by the Chornobyl accident52
. This law regulates the issues relating to scientific,
environmental activities within the exclusion zone, and specifies the powers of executive bodies within this
zone. According to Mr. Semerak, the Minister of Ecology, foreign companies take interest in developing
solar energy projects in this territory53
. The Minister also confirmed during the Assembly of donors of
Ukryttia (Shelter) foundation that arch-shaped confinement is expected to be installed in November54
.
na_hmelnitckyi_aes_prodovjutsya_spvpratcya_z_vropeyiskoyu_komsyu__v_sfer_yaderno_bezpeki_/
44 http://www.atom.gov.ua/ua/press/nngc/45649-na_raes_uspshno_zaversheno_priyimaln_viprobuvannya_sistemi_rodos/
45 http://www.atom.gov.ua/ua/press/nngc/45640-na_raes_proyidut_spln_navchannya_z_natcgvardyu_ta_sbu/
predstavniki_naek_energoatom_vzyali_uchast_v_mjnarodnyi_zustrch_z_pitan_pdvischennya_bezpeki_ta_styikost_aes_do_umov_
vajkih_avaryi_/
47 http://zakon3.rada.gov.ua/laws/show/434-2016-%D0%BF
fahvtc_zaporzko_aes_prohodyat_navchannya_z_montoringu_programnogo_kompleksu_beacontsm/
predstavniki_mnsterstva_energetiki_ssha_obgovorili_pitannya_rozvitku_naek_energoatom_z_kervnitctvom_kompan/
sud_priyinyav_rshennya_na_korist_naek_energoatom_u_sprav_pro_pripinennya_vikonavchogo_provadjennya_za_sumnvnoyu_za
borgovanstyu_ukrelektrovatu/
53 http://ukrainian.voanews.com/a/ukraina-chornobyl-kanada-ameryka/3441357.html
54 http://www.unn.com.ua/uk/news/1588888-nasuvannya-arki-chetvergovogo-energobloku-chaes-zaplanovano-u-listopadi-o-
semerak

Energy Efficiency and Social Issues
Compared to outstanding achievements in reforming other sectors of the energy industry, the progress in
achieving energy saving and energy efficiency has been rather poor, especially in terms of the
implementation of the key directives. This is confirmed by the monitoring report on priority reforms for
the first half of 2016 published by the National Reform Council in July55
.
The Parliament registered the Government’s draft Law “On the Energy Efficiency of Buildings” and MPs’
draft Law “On Commercial Accounting of Utility Services”. These draft Laws are an important step
towards the implementation of energy saving measures throughout the country. However, they need
improvements in terms of taking account of proposals of independent experts and specialists in a
relevant industry.
The Cabinet of Ministers’ approval of the Concept of the introduction of mechanisms of stable financing
of energy efficiency measures (creation of the Energy Efficiency Fund) has been a positive step. However,
this concept may become workable and efficient only given compliance with the EU legislation, in
particular the State aid rules, and in combination with other measures and legislative initiatives in the
area of energy efficiency. The Concept’s being still raw and the early state of development of necessary
legal framework raise serious concerns about such compliance and potential performance of the Fund.
Directive 2012/27/EU on energy efficiency
Metering (Article 9)
Efficient implementation of energy saving measures would be impossible without proper energy metering.
Organizational and legal principles of commercial metering of thermal energy, hot water, district water
supply and provision of metering data to consumers have been laid down in the draft Law of Ukraine “On
Commercial Accounting of Utility Services” that was registered in the Parliament by MPs in July (reg.
No. 4901 of 06 July 2016).
That draft Law provides for compulsory collective and individual commercial and distributive instrumental
metering, as well as sets deadlines for the introduction of metering for non-residential buildings (by 1
October 2017) and residential buildings (by 1 October 2018) which complies with the requirements of the
Directive. Moreover, the draft Law establishes mechanisms of the introduction of commercial metering for
existing, new, reconstructed and overhauled buildings, payment for the installation, replacement and
maintenance of metering devices, regulates legal relations in terms of operation, verification and
replacement of metering devices. Moreover, it regulates access to metering devices, specifies the scope of
compulsory data required for issuing invoices and access to such data, as well as establishes responsibility
for the infringement of commercial metering legislation.
Energy Efficiency National Fund, Financing and Technical Support (Article 20)
By its Ordinance No. 489-p of 13 July 2016, the Cabinet of Ministers approved the Concept of the
Introduction of Mechanisms of Stable Financing of Energy Efficiency Measures (creation of the Energy
Efficiency Fund) that provides for the adoption of a series of important draft Laws — on housing and utility
services, commercial metering and energy efficiency of buildings56
.
However, this Concept is not fully compliant with the Directive which was many times pointed out by
leading experts in energy saving.57
Therefore, the obligations are being fulfilled reversely, i.e. adoption of
acts of secondary legislation precedes the adoption of laws.
Because of the lack of fully operational and efficient mechanisms of the implementation of energy
efficiency measures provided for by EU directives that have not yet been implemented so far, the role of
particular existing support programs increases. In particular, the public’s trust in the governmental “warm”
credit program is gradually increasing which is demonstrated by the data published by the State Agency on
Energy Efficiency and Energy Saving of Ukraine — as many as 150,000 households received State support
55 http://www.president.gov.ua/news/nacionalna-rada-reform-vidzvituvala-za-pershe-pivrichchya-20-37765
57 http://necu.org.ua/wp-content/uploads/2016/05/Rezultaty-opytuvannia-po-fondu-2.pdf

totalling UAH 2 billion58
. In addition, the Government allocated additional UAH 100 million in July to
prolong the “warm” credit program to support energy saving measures in the housing sector.59
In addition to prolonging the “warm” credit program, Mr. Groysman, the Prime Minister of Ukraine,
ordered that Oblast state administrations together with local self-governing authorities accelerate the
process of approval of local programs of co-financing of energy efficiency measures for households and
called on heads of Oblast state administrations and mayors to provide more active support to households
in energy modernization of their houses.60
Because of the very poor information campaign of the Government that was supposed to explain the
reasons and consequences of the increase in tariffs caused by the need to level gas prices for various
categories of consumers, local communities demonstrated more active protest in July. Councils of four
cities, including the capital, have already declared a moratorium on tariff increase, while a number of other
cities are planning on doing the same.61
Comments of Prime Minister Groysman suggest that the public
authorities have no clear plan of settling this imminent conflict. Instead, they prefer the right of choice to
be vested in local self-governing authorities.62
Energy Services (Article 18)
The draft Law “On the Introduction of Amendments to the Law of Ukraine “On the Introduction of New
Investment Opportunities, Securing Rights and Legitimate Interests of Business Entities for the Purposes of
Large-scale Energy Modernization” (in Terms of the Mechanism of Energy Services Procurement)” (reg.
No. 4549 of 29 April 2016) was developed pursuant to Ukraine’s commitment to remove regulatory and
non-regulatory barriers to the introduction of energy service contracts. The implementation of this Law
would allow removal of both regulatory barriers that will result from the enactment of the Law of Ukraine
“On Public Procurement” and non-regulatory barriers, such as insufficient protection of investors and
complicated entry into the market of foreign investments. Unfortunately, this draft Law has not been even
included in the agenda of the Parliament session.
But despite this, the first Ukrainian energy services market was opened in Odesa Oblast. On July 13, a
tender was announced in Savran raion for the procurement of energy services for two local schools.63
Directive 2010/31/EU on the energy performance of buildings
The Government approved the draft Law “On the Energy Efficiency of Buildings” which had been submitted
to the Parliament in compliance with the established regulatory requirements (reg. No. 4941 of 11 July
2016).64
According to Mr. Savchuk, Head of the State Agency on Energy Efficiency and Energy Saving of
Ukraine, the key objective of the draft Law is reduction of energy consumption in buildings. This document
is supposed to create a legal framework for efficient use of fuel and energy resources in residential and
public buildings, as well as raising investments in the area.65
European partners were among the authors of this draft Law , apart from representatives of the Ministry of
Regional Development and the State Agency on Energy Efficiency and Energy Saving of Ukraine. Mr. Janez
Kopač, Director of the Secretariat of the Energy Community, said the following as the draft Law was being
considered by the Government, “I hope that the law on energy efficiency of buildings will be adopted long
before the end of the year. This is important not only for Ukrainians as consumers but also for the budget.
This draft Law is one of the key pre-conditions for the third tranche of the EU macro-financial assistance.
Energy saving is also a good opportunity for the business”.66
58 http://www.kmu.gov.ua/control/uk/publish/article?art_id=249132825&cat_id=244277212
59 http://ua.interfax.com.ua/news/general/360371.html
61 http://ukr.segodnya.ua/ukraine/tarifnyy-fleshmob-zhitomir-i-lvov-vveli-moratorii-na-povyshenie-kommunalki-733425.html
62 http://ua-energy.org/post/61783
63 http://chornomorka.com/archive/a-7854.html
65 http://www.kmu.gov.ua/control/uk/publish/article?art_id=249168338
66 http://www.ukrinform.ua/rubric-politycs/2045786-kopac-zakon-pro-energoefektivnist-osnovna-umova-tretogo-transu-mvf.html

Directive 2010/30/EU on the indication by labelling and standard product information of the
consumption of energy and other resources by energy-related products
As of today, the requirements set by this Directive have been partially complied with. In particular, Ukraine
has already adopted technical regulations on energy labelling of domestic electric refrigerators, domestic
washing machines, light bulbs and electric lamps, domestic dishwashers.
According to unofficial information, in July the Ministry of Justice presented its opinion on the draft
resolutions of the Government developed by the State Agency on Energy Efficiency and Energy Saving of
Ukraine on approval of the rest of technical regulations. This means that in the nearest future, the
Government is likely to adopt a series of resolutions approving technical regulations, such as:
• Technical regulation on energy labelling of air-conditioners;
• Technical regulation on energy labelling of TV-sets;
• Technical regulation on energy labelling of domestic ovens and exhaust hoods;
• Technical regulation on energy labelling of domestic cylinder dryers;
• Technical regulation on energy labelling of domestic combo washer dryers;
• Technical regulation on energy labelling of vacuum cleaners.
Social issues
As households will receive new higher bills only after the beginning of the new heating season, both
national and local political forces are using lack of competent information campaign for their own benefit.
Thus, Oleg Liashko’s Radical Party insists that relevant decisions of the NEPURC must be revoked by court,67
and the All-Ukrainian Union Fatherland calls the increase in tariffs a crime.68
Meanwhile, local authorities
are taking action — as of the end of the past month, councils of a number of Ukrainian cities declared a
moratorium on tariffs, and more cities are likely to follow their example.69
At the same time, Prime Minister Groysman suggests that this looks like an attempt of political stunt and
blames city councils of populism. Though the Head of Government offered a reasonable advice to local
authorities to allocate the funds they received as a result of budget decentralization for the
implementation of energy efficiency measures,70
inconsistent state policy and lack of legal incentives and
efficient mechanisms make it more difficult to arrange large-scale implementation of such measures.
67 http://liashko.ua/news/general/2219-lyashko-mi-dobivayemos-znizhennya-tarifiv-cherez-sud-video
68 http://taryfy.net/
69 http://ua-energy.org/post/61783
70 http://jkg-portal.com.ua/ua/publication/one/grojsman-rozpovv-shho-zrobit-msta-jenergojefektivnshimi-47416

Environment and Renewable Energy Sources
Ratification of the Paris Climate Agreement and adoption of the draft laws on the two extremely
important instruments of environmental policy — environmental impact assessment and strategic
environmental assessment — in the first reading may be regarded as first important steps towards
reforming environmental and climate policies in compliance with the EU standards.
The draft Laws on EIA and SEA must be improved in the process of their preparation for the second
reading with the purpose to ensure their fullest compliance with acquis communautaire and efficient
enforcement within the national legal framework. Implementation of the EU horizontal legislation is one
of the key priorities of the Ministry of Ecology and Natural Resources and bilateral EU–Ukraine
agencies71
.
Discussion of the draft Ordinance of the Cabinet of Ministers “On approval of the Concept of the state
environmental monitoring reform” began which has become one of the first important steps towards
reforming air pollution legislation and practices. Development of the National Emission Reduction Plan
for mining and metallurgical companies deserves particular attention as it is unclear yet whether it will
be consistent with the National Emission Reduction Plan for large combustion plants yet to be approved
pursuant to Ukraine’s commitments to the Energy Community.
It should be noted that Ukraine is among the first 20 world countries and first 3 European counties that
ratified the Paris Agreement72
which proves the country’s readiness for the new stage of renewable
energy development. Moreover, by placing alternative energy development among their priorities,
authorities are thus seeking to raise more foreign investments in the sector, in particular by taking
advantage of the “green” potential of Chornobyl NPP exclusion zone.
Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the
environment (codification) (Article 363 of the AA)
On July 12, the Parliament approved the draft Law of Ukraine “On Environmental Impact Assessment” (reg.
No. 2009а-d) in the first reading73
. The document is now being prepared for the second reading. This draft
Law is important and comprehensive and reflects the model and provisions of the Directive. At the same
time, it is too complicated and needs improvements so that it can secure efficient implementation of the
proposed environmental impact assessment model in the national system (especially to make it consistent
with the existing construction authorization procedures) and mitigation of corruption risks. Moreover, the
implementation thereof will require adoption of a series of acts of secondary legislation.
Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the
environment (Article 363 of the AA)
On 12 July 2016, the Parliament approved the draft Law of Ukraine “On Strategic Environmental
Assessment” (reg. No. 3259) in the first reading.74
The document is now being prepared for the second
reading. In our opinion, the biggest issue in terms of its compliance with the Directive is that the scope of
this draft Law has excluded almost all urban planning documentation, including special plans. While in the
European Union, it is territory planning that is subject to most SEAs.
71 http://menr.gov.ua/press-center/news/123-news1/5105-ostapa-semerak-my-vidkryti-do-hromadskoho-obhovorennia-
reformuvannia-pryrodookhoronnoi-sfery,
http://www.kmu.gov.ua/kmu/control/uk/publish/article?art_id=248626330&cat_id=247749488
72 http://menr.gov.ua/press-center/news/123-news1/5154-ostap-semerak-ukraina-stala-u-riad-tykh-krain-iaki-formuvatymut-
svitovyi-trend-zberezhennia-klimatu

Directive 2003/35/EC providing for public participation in respect of the drawing up of certain plans and
programmes relating to the environment and amending with regard to public participation and access to
justice Council Directives 85/337/EEC and 96/61/EC (Article 363 of the AA)
On 12 July 2016, the draft law “On the Introduction of Amendments to Certain Legislative Acts of Ukraine
as Regards Improvement of Urban Planning Activities” (reg. No. 4733-2) was voted down. The document
proposed to expand the rights of community in the area of urban planning, in particular by approval of
detail provisions on public hearings75
. However, the draft Law No. 4733-1 with a similar title was approved
in the first reading76
. This draft Law aims to simplify construction authorization procedures by authorizing
construction depending on categories of difficulty based on a declaratory principle of a construction permit,
but, unlike the dismissed alternative draft Law, suggests no amendments regarding the public participation.
The document may be improved before the second reading with the purpose, among other, to take
account of the Aarhus Convention and directives on public participation.
Directive 2008/50/EC on ambient air quality and cleaner air for Europe (Article 363 of the AA)
In his interview, Mr. Semerak, the Minister of Ecology and Natural Resources, said the following, “The
nature is not the World Bank, it cannot allow a loan deferral and will impose fines. That’s why we must
install waste meters at each source of waste and create a system of economic incentives for businesses
that invest in waste reducing equipment”77
. However, political statements of the sort must be accompanied
by active implementation of the Directive as the complex of measures under the Plan for the
implementation of the Directive, such as strengthening institutional capacity of ambient air monitoring,
falls on 2015–2016.78
Though the published non-paper for the second meeting of the EU–Ukraine Association Committee that
took place on 5–6 July 2016 reports on the analysis of compliance of the existing monitoring networks with
the Directive, development of draft guidelines for air quality planning for zones and agglomerations,
development of the draft monitoring procedure for companies, institutions and organizations whose
activities caused environmental degradation, these documents have not been published.79
On July 21, the Ministry of Ecology and Natural Resources published the draft Ordinance of the Cabinet of
Ministers “On Approval of the Concept of the State Environmental Monitoring System Reform” for public
discussion open until 21 August 2016.80
In particular, according to the explanatory note to the draft
Ordinance, the existing system needs drastic changes “taking account of the fact that Ukraine is a party to
many international bilateral and multilateral agreements and conventions of which the implementation
requires true information about the state of the environment, as well as Ukraine’s commitments in the
area of environmental protection relating to the implementation of EU legislation”.
The Concept identifies the key objectives of the state environmental monitoring system reform:
optimization of the existing monitoring system, transition from interdepartmental monitoring to
comprehensive assessments, creation of a unified observation network, creation of conditions for technical
re-equipment of the monitoring system, organization of scientific and technical support in improving the
monitoring system, fulfilment of international commitments relating to the provision of environmental
information. The adoption and further implementation of this Concept will facilitate the implementation of
institutional, organizational and coordination measures provided for by the Plan for the implementation of
Directive 2008/50/EC.
75 http://w1.c1.rada.gov.ua/pls/radan_gs09/ns_pd2?day_=12&month_=07&year=2016&nom_s=4
76 http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_2?id=&pf3516=4733-1&skl=9
77 http://menr.gov.ua/press-center/news/123-news1/5054-ostap-semerak-ratyfikuvavshy-paryzku-uhodu-ukraina-otrymuie-shans-
vplyvaty-na-mizhnarodnu-polityku-zakhystu-klimatu-3
78 http://www.kmu.gov.ua/kmu/control/uk/publish/article?art_id=248102785&cat_id=247984327
79 http://www.kmu.gov.ua/kmu/control/uk/publish/article?art_id=248626330&cat_id=247749488
80 http://www.menr.gov.ua/public/discussion/5138-proekt-rozporiadzhennia-kabinetu-ministriv-ukrainy-pro-skhvalennia-
kontseptsii-reformuvannia-derzhavnoi-systemy-monitorynhu-dovkillia

Directive 2009/147/EC on the conservation of wild birds (Article 4.2) (Article 363 of the AA)
The Parliament Committee on Corruption Prevention and Counteraction has come to the conclusion
(Minutes No. 79 of 14 July 2016) that the draft Law “On the Introduction of Amendments to Certain
Legislative Acts of Ukraine (as Regards Reinforcement of Environment Protection Activities)” (reg. No. 4869)
which was registered on June 24 shows no corruption risks, and the document complies with the anti-
corruption legislation.81
On July 12, the Parliament registered the draft law “On the Introduction of Amendments to Certain
Legislative Acts of Ukraine (as Regards Reinforcement of Measures to Fight Environmental Law Violations)”.
Though not directly related to protection of birds, this Law, once adopted, would facilitate conservation of
wild birds, in particular by increasing fines under twelve anti-poaching Articles of the Code of Ukraine on
Administrative Offences.82
Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control) (Article 363
of the AA)
On 7 July 2016, a roundtable meeting was held “Environmental Aspects of the Implementation of the EU–
Ukraine Association Agreement. Mining and Metallurgical Industry” organized by Ukrmetalurgprom. The
participants in the meeting discussed, among other things, the issue of development of the National
Emission Reduction Plan for mining and metallurgical companies.83
In particular, Mr. Oleksandr Kalenkov,
President of Ukrmetalurgprom, said, “After the companies decided that the key beneficiary of the
development of these two documents [draft National Emissions Reduction Plan and Study of Rationale of
the Quote of Mining and Metallurgical Companies for Greenhouse Gas Emissions] would be
Ukrmetalurgprom, a series of procurement procedures was held resulting in selecting contractors”. General
contractors that will develop these documents became the Centre of Ecology and Development of New
Technologies and Ecosystema State Centre.
In particular, according to Mr. Kalenkov, a document was developed within the framework of the National
Emission Reduction Plan project that specifies environmental, economic and technological aspects of
transition of mining and metallurgical companies to new environmental requirements under Directive
2010/75/EU. He also mentioned that the National Emissions Reduction Plan must be approved by the
Ministry of Ecology, considered by the Cabinet of Ministers and then adopted by the ordinance of the
latter.84
It is unclear so far how this emission reduction plan for mining and metallurgical companies will be brought
in line with the National Emission Reduction Plan for large combustion plants which was developed and
discussed with the public last year but, despite the Government’s promises to approve it by the end of
2015, still remains only a draft.85
Directive 2009/28/EC on the promotion of the use of energy from renewable sources and amending and
subsequently repealing Directives 2001/77/EC and 2003/30/EC (Article 338 of the AA)
In July, the Parliament adopted the Law No. 0105 “On Ratification of the Paris Climate Change Agreement”86
that was subsequently signed by President Petro Poroshenko87
. According to the Minister of Ecology
Mr. Semerak, by ratifying the Agreement, Ukraine confirmed that it chose low-carbon model of the national
economy development88
. Therefore, this is supposed to show foreign investors the need to support low-
83 http://www.ukhin.org.ua/index.php?option=com_content&view=category&id=6&layout=blog&Itemid=28
84 http://minprom.ua/news/214021.html
87 http://ua.interfax.com.ua/news/general/361253.html
88 http://menr.gov.ua/press-center/news/123-news1/5139-ostap-semerak-ratyfikatsiia-paryzkoi-uhody-tse-vybir-ukrainy-na-
koryst-vidnovliuvalnoi-enerhetyky

carbon model of Ukraine’s development and to allow raising significant funds in climate change projects
covering various sectors of economy.
By its Ordinance No. 552-р of 13 July 2016, the Government approved the Program89
of Hydropower
Development in Ukraine by 2026 according to which the share of switching capacities of hydropower plants
and pumped-storage plants is going to reach 15.5% in the overall energy balance. The implementation of
this program will allow achieving an optimal balance between the various types of energy-generating
capacities, establishing an economically justified price for electricity, as well as facilitate reduction of
exhaust gases emissions by TPPs90
.
At the same time, the Ministry of Ecology sent an official letter to the author of the program, i.e. the
Ministry of Energy and Coal Industry, with its comments and proposals. In particular, the Ministry of Ecology
disapproves of the construction of Dniester PSP (stages 1–3) and Kaniv PSP because no assessment of
impact on the environmental or the nature reserve fund within the affected area was conducted.
Nevertheless, the opinion of the Ministry of Ecology was disregarded when the program was in the process
of approval91
, just like the opinion of the environmental community about the need to conduct strategic
environmental assessment and violation of the Aarhus Convention in terms of the public participation in
environmental decision-making.
Ukraine wants to use potential of Chornobyl exclusion zone in developing “green” energy. The Parliament
adopted the improved draft Law No. 4437 “On the Introduction of Amendments to Certain Legislative Acts
of Ukraine Regulating Certain Aspects of the Legal Status of the Territories Affected by the Chornobyl
Accident”92
. This draft Law regulates, inter alia, the issue of State-owned land management, urban planning
and granting permits to use water bodies within the exclusion zone. According to the Minister of Ecology
Mr. Semerak, the adoption of this Law will allow raising investments in the renewable energy sector of
Ukraine and the development of Chornobyl NPP exclusion zone as a number of investors — in particular two
U.S. investment companies and four Canadian energy companies — are already interested in construction
of solar power plants in the exclusion zone93
.
89 http://www.kmu.gov.ua/document/249220030/R0552.doc
91 http://menr.gov.ua/images/blog/news/12_07_2016/Program_gidroenergetyky.pdf
93 http://menr.gov.ua/press-center/news/123-news1/5156-ostap-semerak-soniachni-elektrostantsii-v-zoni-vidchuzhennia-
nablyziat-ukrainu-do-zaprovadzhennia-ekolohichno-chystoi-enerhetyky

Oil
The government still demonstrates no active efforts to fulfil Ukraine’s commitments in the sector. This is
explained by rather distant deadlines for the set objectives and vacation period for the specialists
responsible for drafting governmental decisions. Public authorities apparently lack coordination which
results, in particular, in creation of many working groups for the implementation of the Association
Agreement which show no interaction. In addition, most of them do not even include oil market experts
which results in numerous mistakes in the drafted documents, in the implementation plans in particular.
The results of monitoring show that the government’s activity in the oil sector in July was focused on the
analysis of possibilities of expanding the oil depot that may be used to store oil and oil products, and
improvement of the institutional structure of the system of granting rights to use the subsoil taking into
account Ukraine’s international commitments.
Directive 2009/119/EC imposing an obligation on Member States to maintain minimum stocks of crude
oil and/or petroleum products (Article 338 of the AA)
According to p. 4 and 5 of Section 1.2 of the Plan for the implementation of this Directive, the Ministry of
Energy and Coal Industry undertook to construct additional tanks for the storage of minimum stocks of
crude oil and/or petroleum products94
. This decision resulted from discussion during the roundtable
“Creation of minimum stocks of oil and oil products in Ukraine”95
. The participants in the meeting pointed
out that total volume of minimum stock of oil and oil products in Ukraine should be about 2 million tonnes
of oil equivalent, while the existing oil depot’s capacity is only half as large.
In view thereof, the Ministry of Energy and Coal Industry of Ukraine signed the Order No. 468 of 26 July
201696
. It provides for the 21-month construction of a vertical steel tank with floating roof РВСПП-50 000 in
the village of Smilne, Brody Raion, Lviv Oblast, with the capacity of 50 thousand cubic meters of oil and the
total budget of UAH 177.9 million. According to First Deputy General Director of Ukrtransnafta PJSC
Mr. Pasishnyk, with the expansion of the company’s own oil depot, there will be no need to outsource
storage services97
.
However, it is still not certain whether the funds will be allocated and when the construction will begin. In
addition, as the mentioned oil tank will replace the four tanks put out of operation earlier, the State oil
depot capacity will increase only by 10 thousand cubic meters.
Neither there is progress in creating a working group for the development of the mechanism of formation
of minimum stocks of crude oil and/or oil products which was reported after the roundtable “Creation of
minimum stocks of oil and oil products in Ukraine” held by the State Reserve Agency of Ukraine on 26–27
May 201698
.
There is another deep concern that due to unconsolidated terminology, Ukrainian politicians and officials
often fail to tell the difference between stabilization stocks, mobilization reserves and minimum stocks of
oil and/or oil products which may affect the development and implementation of the state policy in this
sector.
Directive 94/63/EC on the control of volatile organic compound (VOC) emissions resulting from the
storage of petrol and its distribution from terminals to service stations, as amended by Regulation
No. 1882/2003 (Annex ХХХ, Articles 360–363, 365, 366 of the AA)
The Plan for the implementation of the Directive approved by the Cabinet of Ministers99
contains a lot of
mistakes resulting from inaccurate Ukrainian translation. Thus, oil products (namely petrol, diesel fuel,
kerosene, liquefied petroleum gas) were translated as petrol, and translations of the terms “terminal”,
“mobile containers”, “service stations” and “loading installations” was incorrect either. The translation of
94 http://www.kmu.gov.ua/document/248091904/Dir_2009_119.pdf
95 http://interfax.com.ua/news/press-release/345292.html
97 http://delo.ua/business/minenergouglja-odobrilo-stroitelstvo-nefterezervuara-dlja-ukrtra-320849
98 http://www.gosrezerv.gov.ua/reserv/control/uk/publish/article?art_id=162944&cat_id=45334

Oil
the Directive itself published on the website of the Parliament repeats the same mistakes100
. In addition,
the words “storage of petrol” in the title of the Directive have been interpreted in a wrong way.
In view of the aforesaid, it is advisable to review texts of the relevant documents as the deadlines for the
tasks provided for by p. 1.1.1, 1.1.2 and 1.2.1 of the Plan for the implementation of the Directive will be in
November 2016.
Directive 94/22/EC on the conditions for granting and using authorizations for the prospection,
exploration and production of hydrocarbons (Annex XXVII, Articles 279, 280, 341 of the AA)
Pursuant to p. 1.2.1 of the Plan for the implementation of the Directive101
that provides for the
improvement of the institutional structure to comply with the new procedure of granting rights to use the
subsoil subject to Ukraine’s international commitments, on 6 July 2016 the Minister of Ecology and Natural
Resources of Ukraine signed the Order No. 246 that approved the Regulation on the Commission on the
Subsoil Use.
The Commission was created pursuant to p. 25 of the Procedure of granting special permits to use the
subsoil102
to initially review materials on granting, prolongation, suspension, resumption, re-registration,
cancellation of permits and changes in the special permit for subsoil use.
This decision aimed to prevent behind-the-scenes decision-making and accelerate the procedure of
granting access for prospection, exploration and production of hydrocarbons to all organizations possessing
the necessary resources. With this Commission in place, the process of granting permits for subsoil use was
unblocked103
.
Article 279 of the AA in terms of providing equal access to and exercise of the activities of prospecting,
exploring for and producing hydrocarbons
On July 27, a contractor was selected to raise investments in the implementation of the Agreement on the
Distribution of Hydrocarbons to be produced in Yuzivska field. It became Yuzgaz B.V. (Netherlands) which
was said to be the one that offered the best conditions for the implementation of the project104
. Procedure
and the terms and conditions of the tender and composition of the tender committee that included line
Ministers, Nadra Ukrainy NJSC, Nadra Yuzivska LLC, MPs, were approved by the Interdepartmental
commission on the organization of signing and performance of production sharing agreements.
However, independent experts concluded that the organizers of the tender had failed to comply with the
requirements to ensure equal access to all organizations possessing necessary resources for prospecting,
exploring for and producing hydrocarbons to the tender, and to select the successful tenderer based on
objective published criteria105
.
100 http://zakon.rada.gov.ua/laws/show/ru/994_439
102 http://zakon5.rada.gov.ua/laws/show/615-2011-п
103 http://www.geo.gov.ua/novyna/komisiya-z-pytan-nadrokorystuvannya-zapracyuvala-v-odnodennyy-termin
104 http://nadraukrayny.com.ua/визначено-переможця-конкурсу-на-залу-2/
105 http://economy.apostrophe.com.ua/article/jenergetika/2016-07-29/skandal-s-dobyichey-gaza-na-yuzovskom-uchastke-stali-
izvestnyi-novyie-detali/6509

Business Climate
In July, the awaited draft Laws No. 4493 “On the Electricity Market of Ukraine” and No. 2966-d “On the
National Energy and Public Utilities Regulatory Commission” have not been adopted, again. None of
these draft Laws, providing for the development of an independent energy market of Ukraine and the
creation of the independent regulator, have been voted for in the first and second reading, respectively,
and they will be once again considered in the following V session of the Parliament.
At the same time, significant steps were made towards increasing transparency and reducing corruption
in the customs and public procurement sectors — the one-stop-shop system and ProZorro will be
launched on August 1. Also, the Parliament Committee on Fuel and Energy Complex considered the draft
Law No. 4840 “On Disclosure of Information in Extractive Industries” and recommended to adopt it in the
first reading. Another important achievement was the adoption of the draft Law “On Environmental
Impact Assessment” (reg. No. 2009a-d) in the first reading. The Law is supposed to bind companies to
conduct environmental impact assessment.
Article 22 of the AA, Section III JUSTICE, FREEDOM AND SECURITY, on fight against crime and corruption
Articles 281–288 of the Association Agreement, Chapter 12 Transparency, Directives 2013/34/EU on the
annual financial statements, consolidated financial statements and related reports of certain types of
undertakings, 2013/50/EU amending Directive 2004/109/EC on the harmonisation of transparency
requirements in relation to information about issuers whose securities are admitted to trading on a
regulated market, and 2007/14/EC laying down detailed rules for the implementation of certain
provisions of Directive 2004/109/EC
The Parliament Committee on Fuel and Energy Complex considered the draft Law No. 4840 “On Disclosure
of Information in Extractive Industries” and recommended the Parliament to adopt it in the first reading
and, upon receipt of all comments and proposals, to improve it and prepare for the second reading.106
.
The draft Law “On the Fundamental Principles of Ensuring Cybersecurity in Ukraine” (reg. No. 2126a) was
assessed by the Chief Scientific and Expert Department and discussed by the relevant Parliament
Committee. According to the expert opinion of the first, this draft Law should be improved by the
authors107
. While the Parliament Committee recommended to approve it in the first reading. The law
applies to all critical infrastructure regardless of the form of ownership of which a cyber attack may
threaten the national security. Such infrastructure may include energy companies.
Article 22 of the AA, Section III JUSTICE, FREEDOM AND SECURITY, on fight against crime and corruption
Articles 271–296 of the AA, Chapter 11 Trade-Related energy, Directives 2009/72/EC concerning common
rules for the internal market in electricity and Directive 2009/73/EC concerning common rules for the
internal market in natural gas
The draft Laws “On the Electricity Market of Ukraine” (No. 4493)108
and “On the National Energy and Public
Utilities Regulatory Commission” (No. 2966-d)109
were schedules for the first and second reading,
respectively.
The draft Law “On the Introduction of Amendments to the Law of Ukraine “On Public Procurement” and
Certain Other Laws of Ukraine Regarding Procurement Monitoring” was reviewed by the Parliament
Committees on Budget, European Integration, Corruption Prevention and Counteraction and on Economic
Policy. The latter recommended the Parliament to adopt this draft Law in the first reading110
. At the same
time, ProZorro e-procurement system will become fully operational on August 1 throughout the country111
.
110 http://iportal.rada.gov.ua/news/Novyny/132636.html
111 http://www.kmu.gov.ua/control/uk/publish/article?art_id=249206062&cat_id=244277212,
http://www.kmu.gov.ua/control/uk/publish/article?art_id=249217194&cat_id=244276429

Business Climate
The Ministry of Finance approved all regulatory formalities to launch the one-stop-shop system at the
customs since August 1. The one-stop-shop system will ease doing business due to simplifying and
accelerating customs clearance — the tacit approval principle will apply if control bodies take no decision
within four fours. The one-stop-shop will allow reduction of corruption, costs for business and efficient
allocation of resources. The one-stop-shop initiative is one of the key elements of the comprehensive
customs reform112
.
Articles 378-379 of the AA, Chapter 10 Industrial and enterprise policy, on business environment for all
economic operators
The draft Law No. 4031a “On the Introduction of Amendments to Article 241 of the Civil Code of Ukraine
Regarding Prevention of Illegal Seizure of Property” has been reviewed by the Parliament Committees on
Budget, Corruption Prevention and Counteraction, European Integration and is now being considered by
the Parliament Committee on Legal Policy and Justice113
.
The draft Law “On Environmental Impact Assessment” No. 2009a-d was adopted in the first reading. The
Law is supposed to bind companies to conduct environmental impact assessment. Moreover, the Law will
allow involving the public in discussions of territory development114
.
During a roundtable, the Chairman of the Parliament Committee on Industrial Policy and Entrepreneurship
emphasized on the need to raise investments via industrial parks which is provided for by the draft Laws
No. 2554а-d and 2555а-d. These Laws are supposed to encourage development of domestic processing
industry by simplifying the import duty mechanism and introducing a special tax regime for the first 5–10
years of business115
.
Articles 255–260 of the AA, Chapter 10 Competition, Section 1 Antitrust and mergers, on enforcement of
antitrust law and state monopolies
EU-funded Twinning project UA/49 started on July 1. Within the framework of this project involving EU
Member States (Germany and Lithuania) Ukraine will receive administrative support in the approximation
of its national legislation to the EU requirements and standards and strengthening institutional capacity of
the Antimonopoly Committee of Ukraine116
.
At the same time, during a Parliament session Prime Minister Groysman emphasized on the need to adopt
the draft Law “On the Introduction of Amendments to the Law of Ukraine “On the List of State-owned
Property not Subject to Privatization” to Exclude Fuel and Energy Companies from the List of State-owned
Property That Are not Subject to Privatization but May be Corporatized” (No. 4799) to make the
privatization process public and open117
.
115 http://iportal.rada.gov.ua/news/Novyny/132550.html, http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=58867,
http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=58869, http://iportal.rada.gov.ua/news/Novyny/132523.html

Methodology
The Project is being implemented by five partners and two invited permanent experts. The Project is
being implemented by the following five partners: NGO “DIXI GROUP”, Resource & Analysis Center “Society
and Environment”, Civil Network “OPORA”, Association “European-Ukrainian Energy Agency”, and All-
Ukrainian NGO “Energy Association of Ukraine”. Among the project permanent members are L. Unigovskyi,
General Director of Naftogazbudinformatyka LLC, and G. Riabtsev, Social Program Director of Psycheа
Scientific and Technical Centre.
For the purpose of monitoring the implementation of the Association Agreement, the project
participants have been divided into six working groups. These are, in particular, Gas group: L. Unigovskyi
and R. Nitsovych (DiXi Group); Electricity group: S. Golikova (Energy Association of Ukraine) and O. Pavlenko
(DiXi Group); Energy Efficiency and Social Issues group: T. Boyko (OPORA) and D. Nazarenko (DiXi Group);
Environment and Renewable Energy Sources group: N. Andrusevych (Society and Environment) and
N. Yermakova (DiXi Group); Business Climate and Investments group: V. Beliakova (European-Ukrainian
Energy Agency) and A. Bilous (DiXi Group), Oil group: G. Riabtsev (Psychea) and T. Tkachuk (DiXi Group).
The Project participants identified the monitoring framework for each working group based on the
results of their analysis of the Association Agreement. This framework is described in Annex 1.
The main source of information for monitoring purposes is official information provided by public
authorities. These include, in particular, adopted regulatory and legal acts, statements by top officials,
information about meetings and events with the participation of representatives of public authorities. Also,
monitoring could be based on messages by key energy market players, their decisions and initiatives. Other
sources of information can include published articles, interviews, news, as well as results of bilateral
meetings between experts and energy market players.
The subject of monitoring is transposition and, if appropriate, implementation of Directives. The groups
and experts monitor, first of all, transposition of acquis into the Ukrainian legislation and compliance
therewith. If appropriate, but only as an option, the quality of implementation of acquis and the effect of
their implementation on the market and/or consumers can be subject to monitoring.

Methodology
ANNEX 1.
List of Articles of the Association Agreement and Acquis Subject to Monitoring
The group Electricity and Nuclear Security conducts monitoring and assessment of issues relating to
electricity, nuclear energy, coal and elimination of consequences of the Chornobyl accident. Acquis
concerned:
Article 269, Chapter 11, Title IV, Directive 2009/72/EC (market-related provisions)
Article 270, Chapter 11, Title IV, Regulation (EC) 714/2009
Article 271, Chapter 11, Title IV, Regulation (EC) 714/2009
Article 273, Chapter 11, Title IV, Regulation (EC) 714/2009, Directive 2009/72/EC
Article 274, Chapter 11, Title IV, Regulation (EC) 714/2009, Directive 2009/72/EC
Article 305, Chapter 14, Title IV, Directive 2009/72/EC, Directive 2005/89/EC
Article 338, Chapter 1, Title V
Article 338, Chapter 1, Title V, Cooperation Agreements with IFIs
Article 339, Chapter 1, Title V, coal market
Article 342, Chapter 1, Title V, cooperation in the nuclear safety sector, Directive 96/29/Euratom, Council
Directive 2006/117/Euratom, Council Directive 2003/122/Euratom
Article 342, Chapter 1, Title V, cooperation in the nuclear safety sector
The group Gas conducts monitoring and assessment of issues relating to gas, in particular, the
implementation of the following acquis:
Articles 338, 341, Directive 2009/73/EC (market-related provisions)
Articles 338, 341, Regulation (EC) 715/2009
Articles 338, 341, Directive 2004/67/EC + Annex XXVI (Early Warning Mechanism), Articles 275
(Unauthorised taking of energy goods), 276 (Interruption), 309 and 314 (resolution of disputes) of the
Association Agreement
Chapter 11 Trade-related energy, in particular Articles 269 (Domestic regulated prices), 270 (Prohibition of
dual pricing), 271 (Customs duties and quantitative restrictions), 272 (Transit) and 273–274 (Transport,
cooperation on infrastructure)
Annex XXVII to Chapter 1 Energy cooperation, including nuclear issues — Directive 94/22/EC + Articles 279–
280 (Access to and exercise of the activities of prospecting, exploring for and producing hydrocarbons, and
licensing conditions)
The group Energy Efficiency and Social Issues conducts monitoring and assessment of the implementation
of the following acquis:
Directive 2010/30/EU
Directive 2009/72/EC (social issues)
Articles 338, 341 of the Association Agreement
Directive 2009/73/EC (social issues)
Articles 338, 341 of the Association Agreement

Methodology
The group Environment and Renewable Energy Sources conducts monitoring and assessment of the
implementation of the following acquis:
Article 363, Directive 2011/92/EU
Article 363, Directive 2001/42/EC
Directives 85/337/EEC and 96/61/EC
Article 363, Directive 2010/75/EU
The group Oil conducts monitoring and assessment of the implementation of the following acquis:
Directive 2009/119/EC
Directive 94/22/EC
Directive 98/70/EC
Articles 274, Chapter 11 of the Association Agreement (Trade-related energy)
Article 337 of the Association Agreement
The group Business Climate conducts monitoring and assessment of the implementation of the following
acquis:
Articles 15 of the Association Agreement, Title III
Articles 22 of the Association Agreement, Title III
JUSTICE, FREEDOM AND SECURITY
Articles 29 of the Association Agreement, Title IV TRADE AND TRADE-RELATED MATTERS, Section 2
Elimination of customs duties, fees and other charges
Article 56 of the Association Agreement, Chapter 3 Technical barriers to trade
Article 88 of the Association Agreement, Section 2, Chapter 6 Establishment, trade in services and
electronic commerce
Articles 93 of the Association Agreement, Section 3 Cross-border supply of services
Articles 97–102 of the Association Agreement, Section 4 Temporary presence of natural persons for
business purposes
Articles 104–105 of the Association Agreement, Section 5 Regulatory framework, Sub-section 1 Domestic
regulation
Article 127 of the Association Agreement, Sub-section 6 Financial services
Articles 144–147 of the Association Agreement, Chapter 7 Current payments and movement of capital

Methodology
Articles 150–156 of the Association Agreement, Chapter 8 Public procurement
Directives 2004/18/EC and 2004/17/EC (ANNEX XXI)
Articles 255–260 of the Association Agreement, Chapter 10 Competition, Section 1 Antitrust and mergers
Articles 296–271 of the Association Agreement, Chapter 11 Trade-Related energy, Directives 2003/54/EC
and 2003/55/EC
Articles 272 of the Association Agreement, Chapter 11 Trade-related energy,
Directives 2003/54/EC and 2003/55/EC
Articles 273 of the Association Agreement, Chapter 11 Trade-related energy, Directives 2003/54/EC and
2003/55/EC
Articles 275–276 of the Association Agreement, Chapter 11 Trade-related energy,
Articles 279–280 of the Association Agreement, Chapter 11 Trade-related energy,
Articles 337–342 of the Association Agreement, Title V ECONOMIC AND SECTOR COOPERATION, Chapter 1
Energy cooperation, including nuclear issues, Directives 2009/73/EC, 2009/72/EC and 2004/8/EC
Articles 378–379 of the Association Agreement, Chapter 10 Industrial and enterprise policy
Articles 381–382 of the Association Agreement, Chapter 11 Mining and metals
Articles 383–385 of the Association Agreement, Chapter 12 Financial services
Article 387 of the Association Agreement, Chapter 13 Company law, corporate governance, accounting and
auditing

Glossary
ANNEX 2.
Glossary (Short Description) of EU Acquis Subject to Implementation Monitoring
Gas
Directive 2009/73/EC concerning common rules for the internal market in natural gas and repealing
This Directive establishes common rules for the transmission, distribution, supply and storage of natural
gas. The rules established by this Directive apply to natural gas, liquefied natural gas (LNG), biogas and gas
from biomass. They aim to achieve a competitive, secure and environmentally sustainable market. This
Directive provides for compulsory functional unbinding (supply) of transmission system operators (TSO) in
vertically integrated undertakings. EU Member States must ensure that all customers are entitled to freely
choose natural gas supplier and can easily change supplier within three weeks. At the same time, Member
States may impose on suppliers selling gas to household customers obligations which may relate to
security, including security of supply, regularity, quality and price of supplies, and environmental
protection, including energy efficiency.
Regulation (EU) No. 715/2009 on conditions for access to the natural gas transmission networks and
repealing Regulation (EC) No. 1775/2005
This Regulation sets common rules for access to gas transmission systems, LNG terminals and storage
facilities taking into account the special characteristics of national and regional markets. The document
establishes the procedures of certification of transmission system operators, as well as development,
elaboration and implementation of network codes (with the participation of the European Network of
Transmission System Operators — ENTSO — for Gas). The key objective of this Regulation is to ensure that
all market participants have free and non-discriminatory access to relevant infrastructure and capacities.
Directive 2004/67/EC concerning measures to safeguard security of natural gas supply
This Directive establishes a common framework within which Member States must define general,
transparent and non-discriminatory security of supply policies compatible with the requirements of a
competitive market, and clarify the roles and responsibilities of market players (including in case of
emergency). The government must specify minimum security of supply standards to be complied with by
the market players, prepare and update national emergency measures, identify “vulnerable” customers
and ensure adequate security for them, establish cooperation with the European Commission and other
stakeholders.
Directive 2009/72/EC concerning common rules for the internal market in electricity and repealing
This Directive establishes common rules for the generation, transmission, distribution and supply of
electricity. It also lays down universal service obligations and the rights of electricity consumers and clarifies
competition requirements. Open internal market enables all consumers freely to choose their suppliers and
all suppliers freely to deliver to their customers (free movement of goods, the freedom of establishment
and the freedom to provide services). At the same time, this Directive sets stricter requirements to
unbundling of transmission system operators (TSO) in vertically integrated undertakings. It also contains
consumer rights provisions, reinforces and clarifies the functions and powers of regulatory authorities.
Regulation (EC) No. 714/2009 on conditions for access to the network for cross-border exchanges in
electricity and repealing Regulation (EC) No. 1228/2003

Glossary
This Regulation establishes the rules for cross-border exchanges of electricity with the view to enhancing
competition and achieving harmonization within the internal market in electricity. Comparing to the
previous Regulation No. 1228/2003, this Regulation contains additional provisions on certification of
transmission system operators (TSO), introduction of network codes and publication of information by
system operators. It also clarifies that the European Network of Transmission System Operators for
Electricity (the ENTSO for Electricity) is responsible for the management of electricity transmission
networks to allow trading and supplying electricity across borders within the EU.
Directive 2005/89/EC concerning measures to safeguard security of electricity supply and infrastructure
investment
This Directive establishes measures aimed at safeguarding security of electricity supply so as to ensure the
proper functioning of the internal market for electricity, an appropriate level of interconnection between
Member States, an adequate level of generation capacity and an adequate balance between supply and
demand. It establishes a framework within which Member States are to define general transparent and
non-discriminatory policies on security of electricity supply compatible with the requirements of a
competitive market for electricity. They must define and publish roles and responsibilities of competent
authorities and all relevant market actors. In implementing these measures, Member States are supposed
to guarantee continuity of electricity supplies, explore possibilities for cross-border cooperation in relation
to security of electricity supply, reduce the long-term effects of the growth of electricity demand, ensure
diversity in electricity generation, encourage energy efficiency and the adoption of new technologies,
ensure regular renewal of networks.
Council Directive 96/29/Euratom laying down basic safety standards for the protection of the health of
workers and the general public against the dangers arising from ionizing radiation
This Directive establishes common basic safety standards for the protection of the health of workers and
the general public against the dangers arising from ionizing radiation. This Directive applies to all practices
which involve a risk from ionizing radiation emanating from an artificial source or from a natural radiation
source in cases where natural radionuclides are or have been processed in view of their radioactive, fissile
properties, etc. It also applies to work activities which involve the presence of natural radiation sources and
lead to a significant increase in the exposure of workers or members of the public.
Council Directive 2006/117/Euratom on the supervision and control of shipments of radioactive waste
and spent fuel
This Directive authorizes transboundary shipments of spent fuel between Member States for processing,
requires prior authorization for transboundary shipments of radioactive waste and spent fuel where such
fuel is moved from, through the territory of or to a Member State. This Directive also requires return of
radioactive waste to its country of origin.
Council Directive 2003/122/Euratom on the control of high-activity sealed radioactive sources and
orphan sources
This Directive establishes stricter rules for control of sealed radioactive sources, and harmonizes a relevant
policy on a common European level. “Sealed source" means the capsule, where applicable, enclosing the
radioactive material as an integral part of the source (used in medical science, scientific research). This
Directive applies to the storage of such materials and requires the Member States to provide plans of
specific measures for the treatment thereof.
Directive 2010/30/EU on the indication by labelling and standard product information of the
consumption of energy and other resources by energy-related products

Glossary
This Directive regulates labelling of energy-related products and provision of information to consumers
relating to their consumption of electric energy. It applies to products which have a direct or indirect
impact on the consumption of energy and on other resources during use. Suppliers placing products on the
market must ensure that such products are labelled with the information about their consumption of
energy and other resources. Suppliers must also produce technical documentation to include: a general
description of the product; the results of design calculations carried out; test reports; the references
allowing identification of similar models. The technical documentation must be available for inspection
purposes for a period ending five years. Suppliers must provide the necessary labels and product-related
information free of charge to dealers, and the latter must display labels properly, in a visible and legible
manner.
Directive 2010/31/EU on the energy performance of buildings
This Directive promotes the improvement of the energy performance of buildings within the Union, taking
into account outdoor climatic and local conditions. It lays down minimum requirements, common general
framework for a methodology and covers energy used for heating, hot water, cooling, ventilation and
lighting. National authorities must establish reasonable minimum requirements to energy efficiency to be
reviewed every five years. They also establish a system of certification of the energy efficiency. Such
certificates provide information to prospective buyers or tenants on the energy performance of buildings,
and advice on enhancing it.
Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and
repealing Directives 2004/8/EC and 2006/32/EC
This Directive establishes a common framework of measures for the promotion of energy efficiency within
the Union in order to ensure the achievement of the Union’s 2020 20% headline target on energy
efficiency. Such measures include:
• annual 1.5% energy savings resulting from implementing energy efficiency measures by distribution
network operators and suppliers;
• enhancing energy performance of heating systems, installation of double-glazed windows and roof
insulation;
• purchase of buildings, products and services with high energy-efficiency performance by public bodies;
• annual energy modernization of at least 3% of the total floor area of buildings owned and occupied by
public bodies;
• expanding rights and possibilities of consumers in the area of energy management which includes easy
and free access to the metering data on the actual consumption;
• national incentives for small and medium-sized enterprises to conduct energy audit that should be
mandatory for all large enterprises;
• monitoring of the energy performance of new energy generating capacities.
Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the
environment (codification)
This Directive introduces an important instrument of the environmental policy — environmental impact
assessment. Member States must ensure, first of all, that projects likely to have significant effects on the
environment (by virtue, inter alia, of their nature, size or location) are made subject to a requirement for
development consent and an assessment with regard to their effects. This Directive contains two lists of
projects subject to environmental impact assessment (from nuclear power stations, gas pipelines, etc., to
large pig farms). An important element is stricter publicity requirements, including to the public
participation in the environmental impact assessment.

Glossary
Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the
environment
This Directive introduces an important instrument of environmental policy — strategic environmental
assessment. An environmental assessment must be carried out of certain plans and programmes during
their preparation. Such assessment includes preparation of the environmental report (that must contain
detail information on the likely significant environmental effects and reasonable alternatives) and
consultations with the relevant authorities and the public. Where a transboundary effect is possible, an
assessment and consultations in a transboundary context must be carried out.
Directive 2003/4/EC on public access to environmental information and repealing Council Directive
90/313/EEC
This Directive implements the provisions of the Aarhus Conventions relating to public access to
environmental information. It aims to guarantee public access to environmental information owned by
public authorities — both upon request and through active dissemination thereof. Environmental
information must be made available to an applicant within one month after the receipt by the public
authority of the applicant’s request. A request for environmental information may be refused if the request
is manifestly unreasonable, or formulated in too general a manner, concerns an unfinished document or
internal communications.
Directive 2003/35/EC providing for public participation in respect of the drawing up of certain plans and
programmes relating to the environment and amending with regard to public participation and access to
justice Council Directives 85/337/EEC and 96/61/EC
This Directive addresses the implementation of the Aarhus Convention in respect of public participation
and access to justice. It sets the requirements to the introduction of mechanisms of informing the public,
holding consultations with the public and taking account of comments and proposals of the public in
decision-making. Member States must ensure that the public is given early and effective opportunities to
participate in the preparation and modification or review of the plans or programmes required to be drawn
up under the provisions listed in Annex I of the Directive.
Directive 2008/50/EC on ambient air quality and cleaner air for Europe
This Directive establishes ambient air quality and ambient air quality management standards. For this
purpose, it establishes upper and lower assessment thresholds, target and threshold values, sets objectives
for the reduction of the effect of particulate matters, defines and classifies zones and agglomerations,
introduces the systems of informing the public and ambient air quality assessment with respect to various
pollutants. Where, in a given zone or agglomeration, there is a risk that the levels of pollutants will exceed
the alert thresholds, short-term action plans must be drawn up.
Directive 1999/32/ЕС relating to a reduction in the sulphur content of certain liquid fuels and amending
Directive 93/12/EEC, as amended by the Regulation (EC) No. 1882/2003 and Directive 2005/33/EC
The purpose of this Directive is to reduce the emissions of sulphur dioxide resulting from the combustion of
certain types of liquid fuels and thereby to reduce the harmful effects of such emissions on man and the
environment. It sets the maximum sulphur content in heavy fuel oil, gas oil and marine gas oils. It also
specifies methods of sampling and analysis of sulphur content in fuel to check compliance with the set
requirements.
Directive 2009/147/EC on the conservation of wild birds (Article 4.2)
This Directive relates to the conservation of all species of naturally occurring birds in the wild state in the
European territory of the Member States. The mechanism of conservation of wild birds provides for the
protection of their habitats; protection and use of birds; prevention of harm that can be caused by invasive

EU-Funded Project Monitors Energy Reforms in Ukraine

EU-Funded Project Monitors Energy Reforms in Ukraine

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Similar to EU-Funded Project Monitors Energy Reforms in Ukraine

Similar to EU-Funded Project Monitors Energy Reforms in Ukraine (20)

More from DonbassFullAccess

More from DonbassFullAccess (20)

Recently uploaded

Recently uploaded (20)

EU-Funded Project Monitors Energy Reforms in Ukraine